Topics covered:

Supplementary payments

Defense and indemnitees of the insured

Who is an insured

Employees as insureds

Real estate managers/custodians

Newly acquired organizations

Undesignated joint ventures or partnerships

Limits of insurance

Other limits

Application of limits

Conditions

Other insurance

Other conditions

Supplementary Payments

 There are seven supplementary payments, which are the same in both the claims-made and the occurrence versions of the CGL coverage form. The payments apply to both coverage A and coverage B.

 We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend:

a.All expenses we incur.

b.Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds.

c.The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds.

d.All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 per day because of time off from work.

e.All court costs taxed against the insured in the "suit". However, these payments do not include attorneys′ fees or attorneys′ expenses taxed against the insured.

f.Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer.

g.All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance.

These payments will not reduce the limits of insurance.

Analysis

 The insurer promises to pay, with respect to any claim or suit it defends, the following: 1. All expenses incurred by the insurance company. 2. The cost of bail bonds, up to $250. These bonds must be required because of accidents or traffic law violations arising out of the use of a vehicle to which the general liability policy's bodily injury liability coverage applies; in other words, a vehicle such as one defined as mobile equipment on the CGL form, and not one defined as an auto, which would be more properly insured under an auto policy. The provision for this payment states that the insurer does not have to actually furnish the bonds. 3. The cost of bonds to release attachments. This payment is limited to the cost of bonds whose amounts are within the applicable limit of insurance. Again, the policy states that the insurer is not required to furnish the bonds. 4. All reasonable expenses incurred by the insured at the insurer's request to assist the insurer in investigating or defending the claim or suit. This includes actual loss of earnings up to $250 a day to compensate the insured for time off from work. The insured should note that the insurer will pay reasonable expenses and, since that is not a defined term on the CGL forms, the amount paid will be subject to the insurer's agreement. 5. All court costs taxed against the insured in the suit. The provision also makes the point that these payments do not include attorneys' fees or expenses taxed against the insured. This means that the attorneys' fees and expenses of opposing counsel that may be taxed against the insured are not covered as supplementary payments. 6. Prejudgment interest awarded against the insured on that part of the judgment the insurer pays. The provision states that if the insurer makes an offer to pay the applicable limit of insurance, it will not pay any prejudgment interest for the period of time after the offer is made. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and before the insurer has paid or offered to pay or deposited in court the part of the judgment that is within the applicable limit of insurance. This clause is telling the insured that, if the insurer decides to appeal a judgment against the insured, any interest on that judgment that accrues will be paid by the insurer and not the insured.

 The CGL coverage forms state that "these payments will not reduce the limits of insurance". In other words, the payments are in addition to the policy limits.

 Defense and Indemnitees of the Insured